D.C. Approves $33M Tax Deal With LivingSocial

Final vote next month

By WAMU 88.5 - American University Radio
|  Tuesday, Jun 26, 2012  |  Updated 10:43 PM EDT
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D.C. Approves $33M Tax Deal With LivingSocial

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The website LivingSocial is known for saving people money, but the company is set to receive it's own deal — courtesy of District taxpayers.

The D.C. Council unanimously approved a bill to save the daily-deal company LivingSocial almost $33 million in taxes. In return, the company will pledge to keep its headquarters in D.C. and make sure that half of its new hires are District residents.

The Mayor Vincent Gray's administration has pushed hard to attract technology companies to D.C., and often points to LivingSocial as a prime example of D.C.'s tech-friendly environment.

Critics of the deal, such as the DC Fiscal Policy Institute, question whether the city is giving too much away. The group said city leaders should have pushed harder for clawbacks, or penalties in the deal, in case Living Social doesn't hold up its end of the bargain.

A second and final vote on the measure is set for next month.

Complete story at wamu.org

Copyright WAMU 88.5 - American University Radio. All Rights Reserved.

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